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C in E Mati • TRADE NEWS • Earnest Distribution Discussions Begin Industry Unanimous In C IN E MAti • TRADE NEWS • Earnest distribution discussions begin Industry unanimous in OTTAWA - Negotiations be­ for figures about the number of open competition w ith the rejecting distribution policy tween the minister of Com­ films distributed by the Ma­ Majors, No study know n to munications and the Major jors, the markets and the reve­ Cinem a Canada h ad suggested American distribution com­ nues, among other things. that negotiations with the TORONTO - On June 27 , in tributors in the Canadian mar­ panies have begun in earnest David Silcox, assistant deputy Majors was a viable option for both Toronto and Montreal, ket, and $14.5 earned by foreign over the question of the dis­ minister and one-time presi­ the government to take. Canadian distributors held distributors outside of Canada. tribution of,S=anadian films by dent of the Canadian Film Furthermore, those acquain­ press conferences demanding The distributors maintain that these companies. In a press re­ Development Corp., is sche­ ted with the process of writing that the National Film and Video these figures are conclusive lease dated July 30, the Majors, duled for a round of meetings the policy insist that, until a Policy be amended to require proof that Canadian dis­ through their spokesman Mil­ with the Majors in late August late date, it held strong posi­ that all films in which govern­ tributors are able to generate lard Roth, agree in principle, to in Los Angeles after his cur­ tions bolstering Canadian dis­ ment agencies invest be dis­ more revenues than foreign "play an active role in helping rent vacation in California tributors, and suggested mea­ tributed in Canada by Cana­ distributors in the Canadian to achieve the cultural and eco­ draws to a close. sures similar to those in Que­ dian companies. marketplace. nomic development objectives The distribution aspect of bec's Bill 109 to curb the in­ In a policy analysis, the dis­ The thrust of the distribution outlined in the National Film the film policy has drawn con­ fluence of the Majors in tributors, members of the policy (see Cinema Canada No. and Video Policy." siderable criticism from the Canada. Association of Independent 108) is to encourage the Ame­ In this first meeting between Canadian film industry (see MacDonald insists that the and Canadian Owned Motion rican Majors to pick up more the minister Ed Lumley, newly related articles), and the gov­ policy still does support the Picture Distributors and of the Canadian films for distribution appointed by the Turner gov­ ernment has been charged Canadian distributor through Association quebecoise des both in Canada and in other ernment to head up the depart­ with undermining the entire the marketing initiatives of distributeurs et exportateurs territories. This attitude, say ment of Communications Canadian distribution sector, Telefilm Canada, and the de films state that from 1968 10 the distributors, undermines (DOC), and Roth, executive already considerably weakened monies now available to them 1974, the Canadian Film Dev­ completely the Canadian dis­ director of the Canadian -Mo­ by the domination of the Majors for the distribution of Cana­ elopment Corp. required every tribution companies. tion Picture Distributors Asso­ in the Canadian marketplace, dian films. "In every year, the film it funded to have a dis­ In an eloquent open letter to ciation ICMPDA), full agree­ the increased competition of Canadians distribute the vast tribution contract with a Cana­ the then-minister of Com­ ment was achieved over "the from the classics divisions of majority of Canadian films; dian distributor. This was the munications Francis Fox, re­ need to work together toward foreign-based distribution the Majors pick up, at best, a period during which the best­ printed here on p. 35, the dis­ the full realization of Canada's companies, and the paucity of dozen." known Canadian directors tributors spell out the anger objectives" for the industry by viable product world-wide, She insists, however, that the (Carle, Jutra, Cronenberg, She­ and deception they felt when developing ways through which These latter factors are amply logic of the policy is c1ear- that bib, etc.) began working, and it confronted with a film policy the Majors "could address these described in the film policy the most important factor is to was also the period during which, in their opinion, would objectives, primarily those of itself. get a quality product to Cana­ which the films were the most reinforce the hold of the Ame­ greater access by Canadian During the process of crea­ dian audiences. "You can gear profitable if one compares rican Majors over the Cana­ productions to the screens and ting the policy, several studies any policy toward the product, budget to revenues generated. dian marketplace. They re­ revenues" of the marketplace. were commissioned by the or toward the players. This From 1974 to 1981, the dis­ iterate the old saying which One of the first steps in the DOC, the most exhaustive one policy is dominated by a con­ tributors continue, the require­ Fox repeated in his policy process is the creation of a coming from the Task Force on cern for the product and the ment for distribution by a paper, "Those who control the common data base, Cinema Distribution headed by pro­ audience it should reach," she Canadian distributor was distribution sector, control the Canada was told by Lynn Mac­ ducerllawyer Ronald I. Cohen. concedes, suggesting that dropped, and the tax shelter industry," and insist that the Donald, the director-general of It was generally acknowledged through growth and by gaining' prompted a boom of produc­ minister has no right to under­ Cultural Affairs at the DOC, so that all the studies underlined a world market, Canadian dis­ tion. The result, they state, was take negotiations for the private that both parties are using the the grave situation in which tributors (the players) will that $600 million of production sector w hen these negocia­ same numbers and talking the Canadian distributor found eventually playa larger role in generated $40 million of tions do not have th e welfar e of about the same thing during himself, and the importance of the distribution of Canadian revenues, $24 million of which that sector at h eart. the current discussions. The' immediate and radical initia­ films. were, nevertheless, earned by The appeal of the distributors CMPDA is expected to comply tives if the sector was not to be Concretely, the distribution Canadian distributors, $1.5 was echoed by the consulta­ with the department's request fatally debilitated through aspect was determined as fol­ million earned by foreign dis- (cant. on p. 3 5) lows: "The six or seven pieces of research commissioned in CanContent means financial desaster the area of distribution were CanContent 0K with Ontario public tL studied and options were dev­ OTTAWA- In an effort to stave separate, non-competitive areas eloped, ranging from the most TORONTO - The "overwhelm­ channels (6 % of population) to off the creation of yet another in which each company will costly to the least, the more ing majority" of Ontario resi­ over Zo channels 114%). Also the monopoly in the communica­ hold the monopoly, will simply interventionist to ,the least, dents favor maintenance of numbers of channels received tions field, Lawson Hunter, the "remove any leverage" the etc./!, explains MacDonald, current Canadian content levels varied by the respondents' re­ Director of Investigation and CRTC has in dealing with the These options were submitted on television, and in the event gion, income levels and com­ Research under the Combines companies. It wiII not solve the to the senior management of the addition of new televi­ munity size, For example, while Investigation Act, appeared be~ problem, says Lawson. committee, composed of deputy sion channels the "vast majo­ only 8% of Metro Toronto re­ fore the CRTC 0[\ July 24 and minister Robert Rabinovitch rity" of Ontario residents would sidents receive only 1-6 chan­ Despite projections, fur­ requested it roll back the Cana­ and six assistant deputy prefer to see this done by es­ nels, 41 % of those in Northern nished by the applicants, which dian content requirements for ministers, whose first job was tablishing new Canadian chan­ Ontario are in this category. suggest that such are-definition Canadian pay-TV licensees to "get rid of the crazies" nels rather than importing U.S. If four out of five Ontario would allow them to be profit­ Isee text of Hunter's presenta­ among the options and to sug­ channels. residents fee l they receive ei­ able, Hunter cautions that "the tion, p. ??). gest those which should be There are the two most pro­ ther too many or about the Commission well knows the According to Hunter's analy­ adopted. "The options were nounced conclusions to be de­ right number of TV channels, forecasts presented to it re­ sis, the "overwhelming prob­ considered according to their rived from a recently released "a disproportion ally h igh p er­ garding pay-television matters lem" faced by the pay-licensees financial feasibility, their poli­ survey commissioned by the centage" 157 %) of those w ho to date bear little resemblance is "the existing structure of tical feasibility and the timing Ontario ministry of Transpor­ think they receive too few cha n­ to the experience in the indus­ Canadian content obligations of the policy." Ultimate ly, the tation and Communications. nels live in rural areas, try," and foresees that the which they must meet," obliga­ then-minister of Communica­ Entitle d "View er Choice of Two out of three respondents Canadian content problem tions which in turn cause an tions, Francis Fox, bears Television Services in Ontario," have cable ; two thirds of these will come back to haunt the unacceptable repeat factor of the survey results, re leased a channe l converter, w hile 12";, CRTC in future hearings if it is responsibility for the final Canadian programs, a high dis­ Julv 11, w ere prep ared by T o­ ( 8 ~~ of the tota l sample I sub­ not dealt with now.
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